Are you trying to decide whether to rent a home, or purchase one? You’re not alone. It’s a decision a lot of people are facing.
When you rent a home the landlord deals with the insurance, taxes and maintenance. Even some apartment homes include utilities and/or cable in your monthly rent. When most people are weighing their options they tend to look at what they’re paying in rent, versus what their house payment would be. You also want to look at how much of that payment would go towards your principal. It all deals with mortgage rates and home values. A lot of math, but we’ve provided a calculator at the bottom of this article to help you out.
When buying a home you will be expected to spend a lot of money on transaction costs. This might include your realtor fees, insurance, closing costs, etc.
When renting it is tough to plan your long-term future because your renter may decide at any point to sell the house and do something else with the property, or bring in a new tenant.
Weighing all of your options before you make a decision is your best bet. Each person is in a different situation, so it depends on where you are currently at in life personally, professionally and financially.